Car Trading Platform Renrenche Reveals 2016 Strategy, Future Tencent Investment
36Kr.com, 3/30/16
Beijing-based Shanyi Shanmei Technology, operator of used car trading platform Renrenche, has released its latest statistics and 2016 strategy, and revealed that Chinese internet and mobile services firm Tencent (0700.HK) will be making a strategic investment in the company but did not specify the amount.
Renrenche, which provides coverage in 30 cities across China, reached single-month transaction volume of 12,000 in March 2016, and the platform currently has 40,000 vehicles available for sale. The company has set strategic targets of covering 300 cities within the year, reaching monthly transactions of 30,000 trades, and extending coverage to 1,000 cities in 2017. With the support of strategic investors, Renrenche hopes to partner with various companies to provide after-sales service, maintenance, financing, auction, and used car trade-in services.
Renrenche has budgeted RMB 500 mln for brand advertising in 2016, and will soon make an announcement concerning a strategic funding round from Tencent as well as a partnership involving Tencent services, such as its web portal, online video site, and mobile messaging app WeChat.
Editor's Note: For more information on this topic, please see "Rumor: Used Car Trading Platform Renrenche Lands USD 150 Mln Funding," MD 1/31/16 and "Update: Used Car Trading Platform Renrenche Wins USD 85 Mln Series C," MD 8/03/15 issue.
Keywords: M&A sales target Internet funding Tencent 0700.HK Renrenche Shanyi Shanmei automobile second-hand
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